New Delhi [India], June 18 : Hyundai India, in its latest Initial Public Offering (IPO), is set to dilute approximately 17.5 per cent of its stake, the company informed the SEBI in a filing on Tuesday.
The IPO includes an Offer for Sale of up to 142,194,700 equity shares, each with a face value of Rs 10.
The company has allocated shares to various types of investors. According to the filing, the retail investors are set to receive 35 percent of the total shares, amounting to not less than 49,768,145 equity shares with a face value of Rs 10 each. This category includes individual investors who invest up to Rs 2 lakh.
The Qualified Institutional Buyers (QIBs) are slated to receive up to 50 per cent of the equity shares, totalling not more than 71,097,350 shares, each with a face value of Rs 10. It includes banks, insurance companies, and mutual funds. These institutional investors possess the expertise and financial capacity to carefully assess and invest in capital markets.
The Non-Institutional Bidders (NIBs) will be allocated 15 per cent of the shares. This category includes High Net-worth Individuals (HNIs), Non-Resident Indians (NRIs), trusts, companies, and societies. NIBs, by their nature, have significant financial resources to invest in such offerings.
Hyundai India has also clarified that it does not currently have any employee stock option schemes in place as of the date of this draft IPO offer.
On the financial performance of the company, Hyundai India reported that the weighted average return on net worth for the three financial years 2021, 2022, and 2023 stands at 19.53 per cent. Specifically, the return on net worth for the year 2023 was recorded at 23.48 per cent. The performance highlights about the company's financial health.
By diluting 17.5 per cent of its equity, Hyundai is opening up ownership to a broader investor base, which includes retail investors, QIBs, and NIBs. It will help the company to enhance its capital structure and provide the necessary funds for future expansion and growth initiatives.
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